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What is a Labour Market Impact Assessment?

Canada operates a Temporary foreign worker program to fill in labor shortages when there are no qualified workers in Canada to fill in the position. If an employer wants to hire a foreign national, they need to submit an LMIA application. A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) assessing the impact of hiring a foreign national in Canada. A positive LMIA indicates that there is no Canadian citizen or permanent resident available to fill a position, therefore giving authority to an employer to hire a foreign national.

LMIA Application Requirements

LMIA applications are submitted to Service Canada Processing Centre. Applications must include evidence that the following criteria have been met:

Processing Fee: All applications for LMIAs include a $1000 CAD processing fee which will not be refunded even if the result is negative. Certain applicants under the LMIAs for in-home caregivers may be exempt from this fee.

Business Legitimacy Documents: Documents proving the employer’s status as a legitimate Canadian business.

Transition Plan: Employers must submit a transition plan for how they intend to address the labor need on a temporary basis to hire foreign nationals when qualified Canadians/PR are not available, ensuring Canadian Citizens/PR are given the first chance at available jobs. Eventually, employers are expected to hire Canadian citizens and permanent residents rather than TFWs.

Recruitment Efforts: Employers must submit evidence that they made substantial efforts to recruit Canadian citizens and permanent residents to fill the position prior to hiring a TFW.

Wages: Applications must include information regarding the TFWs wages. This will differentiate the high-wage positions from low-wage positions and ensure that TFWs are paid the same amount for labor as their Canadian equals.

Workplace Safety: TFWs are entitled to the same standards of workplace health and safety as Canadians in the same position. For this reason, employers must provide evidence that TFWs will be covered by insurance that is at minimum equivalent to the health coverage offered by the province or territory where the business is located.

After LMIA Approval

LMIA is used to support permanent residency and work permit applications for foreign nationals. After a positive LMIA, the employer must notify the foreign national so they can apply for a work permit or permanent residency. The work permit issued will be an employer-specific work permit and tied to that employer only. 

Would you like to apply for an LMIA? The ICC Immigration can help. ICC Immigration offers over years of expertise in assisting workers and employers navigate Canadian immigration regulations. Please call for the free consultation, tell us your requirements and one of our officers will contact you to schedule a free telephone consultation with the best plan.

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